Northrop Grumman Corp.’s stock plummeted over 13% on Tuesday, marking the worst performance among S&P 500 companies. The defense contractor attributed its first-quarter profit shortfall to rising production costs for the B-21 bomber program.
The unexpected cost increase put pressure on the company’s financials, leading analysts to label the quarter as “tough.” This downward trend is likely to affect Northrop’s stock prices in the coming days.
The B-21 bomber program has become a significant contributor to Northrop’s revenue, but its high costs have raised concerns among investors. The defense contractor will need to address these expenses to restore investor confidence and maintain its market position.
Source: https://www.marketwatch.com/story/northrops-stock-falls-as-b-21-bombers-production-costs-jump-hurting-profits-23e4300f